Markets > Politics

Obviously, there are differences between markets and politics. Today, I want to talk with you a little bit about why markets are vastly superior to politics.

In politics, there is only one winner. It’s the guy or gal that got the most votes. Everyone else was just an “also ran.” In markets, you can be #’s 2, 3, 6, or even 10 and still be successful. Not only that, your customers will also win, because they have a lot more choices than are available in the “winner take all” scenario of politics.

Politics also sets specific terms that are time-based, rather than performance-based. In politics, you’re stuck with someone for 2, 4, 6, or a lifetime of years. In markets however, you are able to end that relationship at will. You can end it at any time. This also means that those with whom you interact have to cater to your wants and needs. Otherwise, you can simply terminate the relationship. Politics doesn’t allow you to do that.

We also see that politics tends to prioritize and favor the preservation of the status quo. So many things stay the same, because without them doing so, there wouldn’t be a need for more and more “reform.” In markets, we’re always looking for (and receiving) advancements. Take a look at the razor blade industry. There are razors with 3, 4, 5, or more blades being advertised and sold. We also see people undercutting the traditional market like Dollar Shave Club, who makes things cheaper and more convenient than going to the grocery store or Wal-Mart for razors. Advancements, even as small as razors, in markets are vastly superior, because we are always improving on what was, rather than maintaining what is.

We also see in politics the influence of the will of the few. Those few are the ones who buy their politician and the politicians that are willing to be bought to advance the ideas that others have paid for. Markets represent the will of many. You and I are able to easily influence what happens in the marketplace by using our dollars, our ability to walk away from a bad deal, and our wants and needs to really drive what happens in the marketplace.

Those are just four ways in which markets are better than politics. I’d love to hear from you about other ways in which markets are better than politics.

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